At the annual general meeting of Notary Investment Limited, the shareholders agreed to issue 500 million dollars

of shares which will be used to repay debt. The table below provides the current enterprise value. Show the

adjustments and the resulting pro forma amounts.

C) The Income Statement of Notary Investment Limited is below: (all figures are in millions)

Sales

$1,750.00

Cost of Goods Sold

900.00

Gross Profit

850.00

Selling, General & Administrative

320.00

Operating Income (EBIT)

530.00

Interest Expense

130.00

Earnings Before Taxes (EBT)

400.00

Income Taxes

120.00

Net Income

280.00

Note: Depreciation and Amortization is $95

Using the results from b) above, calculate the following multiples:

) Equity value to Net Income (2 Marks)

Ali) Enterprise value to EBITDA (2 Marks)

lil) Enterprise value to EBIT (2 Marks)

Niv) Enterprise value to Sales (2 Marks)

V Which of the four multiples calculated above is typicallv less relevant? Explain your answer